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Mandalay Media Places Last Minute Offer For World Poker Tour

Written by: on 1st November 2009
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World Poker Tour
World Poker Tour

Mandalay Media Inc. stated on Friday that it submitted a revised proposal to WPT Enterprises Inc.’s board to buy its World Poker Tour assets for $36.5 million in cash and stock.

The revised proposal is to acquire WPT for $36.5 million, consisting of $28.5 million in cash, $5 million in Mandalay Media stock and perpetual revenue participation rights, guaranteed to be at least $3 million. The estimated value to shareholders per share is $1.77, including the guaranteed portion of the revenue participation rights, and as adjusted for the actual share count at closing.

WPT Enterprises announced in August that Peerless, a WPT customer, would buy its assets, including the World Poker Tour franchise, for for what equated to $12 million. The new proposal represents a premium of approximately 61% over the closing price of WPT`s common stock on October 26, 2009 and a premium of approximately 28% over the implied value at closing of WPT`s pending asset sale with Peerless Media Ltd.